Re: Why the Financial Meltdown? by Victor Gerhard

Page 2 of 2  
On Thu, 25 Sep 2008 15:19:36 -0500, cavelamb himself

-------------- It is exactly at this point that the non sequitur starts.
Indeed, it can be argued [and I tend to agree] than many of our current socio-economic problems are the result of the financial "great houses" and their "high rollers," and the sooner we are rid of them the better.
There was credit long before there were the great houses of finance, and there will be credit long after they are gone. What there won't be [for a while] if the great houses disappear are the huge piles of [other peoples] money controlled by the "high rollers" and "generous sports."
There will of course be huge paper losses, but these will be born mainly by the "high rollers," their stock and bond holders, and the hedge and private capital funds. The depositors in FDIC institutions will be compensated up to 100k$ per account. [Which IMNSHO is a *MUCH* better use of the tax payers $s]
If this were allowed to happen there would be little risk of inflation as the total supply of money would probably go down slightly, not increase drastically as under "Bazooka" Paulson's plan, and there will be ample number of banks and credit unions to provide the required credit for "normal" human activities. {Now if you want to buy the entire country of Bolivia on E-Z credit, that might be a different story.}
This would also concentrate the losses on those who caused and profited by the asset bubble creation, although there would be some collateral damage [in the military sense] to the average person who had a pension plan, 401k, mutual funds, etc. invested in these so-called "assets."
Note that many of the people screaming the loudest for a governmental bail out are the same people that ground entire American communities into the ground in the name of profit, free enterprise and the free market such as [Neutron] Jack Welch of GE. -------- Jack Welch says U.S. faces "deep downturn" Wed Sep 24, 2008 2:44pm EDT By Nick Zieminski
NEW YORK (Reuters) - Former General Electric Co (GE.N: Quote, Profile, Research, Stock Buzz) Chairman and Chief Executive Officer Jack Welch said the U.S. economy faces a deep downturn in coming quarters, and he supports a proposed $700 billion government rescue package for the financial sector.
"I now believe we are in for one hell of a deep downturn," Welch told the World Business Forum in New York on Wednesday, adding that the first quarter of 2009 will likely be "brutal."
Until recently, Welch said, he had believed the U.S. economy could avoid recession, but he has changed his mind.
"I am now caving," he said. "Get ready for real tough times. They're coming. There is no credit available."
Welch said mortgage lenders, legislators, investment bankers and others are all to blame for the crisis, which stemmed from easy credit and investors' appetite for yield.
"The problem was money didn't cost anything," Welch said. "People took swings." <snip> ------------- for complete article see http://www.reuters.com/article/newsOne/idUSTRE48N74H20080924
[Chainsaw Al Dunlop seemed to be missing.] http://www.businessweek.com/1998/27/b3585090.htm
Also be reminded that the FED has/is pumping in even more than 700 billion to keep the big banks afloat. {Until after the election?} ---------- Federal Reserve Doubles Lending as Crisis Worsens (Update1)
By Scott Lanman
Sept. 25 (Bloomberg) -- Commercial banks and bond dealers borrowed $217.7 billion from the Federal Reserve as of yesterday, more than double the prior week, as the financial crisis worsened and private funding dried up. <snip> --------------- for entire article see http://www.bloomberg.com/apps/news?pid 601087&sid=agfUOGkgrnA0&refer=home
At that rate in a little more than 3 weeks they will have pumped in 700 billion *MORE* conjured up fiat dollars. Thus the 300 point bounce in the Dow. It should be obvious that a lack of liquidity is *NOT* the major problem, but when the only tool you have is a hammer, everything looks like a nail...
Does anyone know where these huge sums are going? I did notice the Maybach and Masaratti ads are back in the Wall Street Journal. http://www.maserati.com / http://www.maybachusa.com /
Unka' George [George McDuffee] ------------------------------------------- He that will not apply new remedies, must expect new evils: for Time is the greatest innovator: and if Time, of course, alter things to the worse, and wisdom and counsel shall not alter them to the better, what shall be the end?
Francis Bacon (1561-1626), English philosopher, essayist, statesman. Essays, "Of Innovations" (1597-1625).
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cavelamb himself wrote:

I've given considerable thought to an analogy that you would understand on an intrinsic basis Richard. You are a programmer. What the United States of America is looking at is what you, a programmer, and I , a guy that has programmed hundreds of millions of lines of code know as
--

VAPOR - WARE


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John R. Carroll wrote:

Got it!
--

Richard

(remove the X to email)
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"John R. Carroll" wrote:

AKA: McCain's "No Show" on Letterman's program last night.
Not much of a fan of Letterman, but he surely asked some relative and interesting questions.
Doubt McCain's handlers will let him respond.
Lew
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"Mike Marlow" wrote:

It's a "My way or the highway" classic we've seen since 2001 from Bush et all.
Lew
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On Thu, 25 Sep 2008 04:11:42 -0400, "Mike Marlow"

Oh fuck yes.
Think your Obamassiah is going win?
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wrote:

You are a damned fool. You could save yourself the public embarrassment by not assuming I am for a particular candidate, in total absence of any insight.
--

-Mike-
snipped-for-privacy@alltel.net
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Mike Marlow wrote:

Please take care to attribute quotations correctly; I did not write the lines you quoted.
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wrote:

Correct - the attributes show it to have been from Too_Many_Tools
--

-Mike-
snipped-for-privacy@alltel.net
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On Wed, 24 Sep 2008 16:08:43 -0700, DGDevin wrote:

That's a really good reminder. Little details like that tend to escape the memory in the midst of a bailout hullabaloo. I knew that, but it had gotten shoved back into secondary memory. Thanks for reminding me.
Now I'm going to go remind my senator :-).
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Too_Many_Tools wrote:

It doesn't lie *solely* with the Repubs. The previous administration helped to get the ball rolling, and the banks and associated companies displayed not only greed (that we expect) but stunning incompetence as well.
As for the White House, I tend to think of myself as a conservative sort, but enough is enough. Until recently I thought John McCain was one of the better politicians in Washington, but I can't take any more of someone with an "R" after his name having the top job. I'm quite prepared to give the Dems their own chance to screw things up for four years, and I'm sure they will. It simply seems impossible for them to do as horrible a job as we've seen for the past eight years, what an incredible mess.
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Phil Again wrote:

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On Wed, 24 Sep 2008 18:40:42 -0700, SavasTU wrote:

Thanks SavasTU.
I am in a bit of a shock by your information. I had no idea, or I wouldn't have posted my reply to OP. Now I comprehend what I thought was implied racist content was not implied but blatant and deliberate racism.
Thanks again. I apologize for posting a reply when it should have been ignored.
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Here is an article in today's N.Y.Times,trying to shed some light on this financial mess. http://www.nytimes.com/2008/09/25/business/25value.html?_r=1&th&emc=th&oref=slogin http://www.nytimes.com/2008/09/25/business/25value.html?_r=1&th&emc=th&oref=slogin
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